Levels Bug?

[nancy6288]

Hi, I'm new here but have been using Photoshop 7.0 for several years now...for some reason I can no longer adjust levels. I go to Layer / New Adjustment Layer / Levels and get the box that says "New Layers" and asks "Name" (Levels 1) "Color" (None) and "Mode" (Normal). No changes here.

I click "Ok" and instead of giving me the box with the histogram, it adds a layer to the Layers Control box and gives me an eyedropper with instructions "Click image to choose a new color" If I click on the image, it changes the foreground/background colors but nothing in the image. I can't get out of this dialogue without closing the application using the Windows Task Manager.

Is this a bug? A setting? I'm stumped - I've changed nothing on my computer... Please help!

Nancy

PS> Running Windows XP